Correlation Between Gan Yuan and Tianshan Aluminum
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By analyzing existing cross correlation between Gan Yuan Foods and Tianshan Aluminum Group, you can compare the effects of market volatilities on Gan Yuan and Tianshan Aluminum and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Gan Yuan with a short position of Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Tianshan Aluminum.
Diversification Opportunities for Gan Yuan and Tianshan Aluminum
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gan and Tianshan is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Tianshan Aluminum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshan Aluminum and Gan Yuan is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Gan Yuan Foods are associated (or correlated) with Tianshan Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshan Aluminum has no effect on the direction of Gan Yuan i.e., Gan Yuan and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between Gan Yuan and Tianshan Aluminum
Assuming the 90 days trading horizon Gan Yuan Foods is expected to under-perform the Tianshan Aluminum. In addition to that, Gan Yuan is 1.66 times more volatile than Tianshan Aluminum Group. It trades about -0.05 of its total potential returns per unit of risk. Tianshan Aluminum Group is currently generating about 0.25 per unit of volatility. If you would invest 805.00 in Tianshan Aluminum Group on October 26, 2024 and sell it today you would earn a total of 75.00 from holding Tianshan Aluminum Group or generate 9.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Tianshan Aluminum Group
Performance |
| Timeline |
| Gan Yuan Foods |
| Tianshan Aluminum |
Gan Yuan and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Tianshan Aluminum
The main advantage of trading using opposite Gan Yuan and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Tianshan Aluminum can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tianshan Aluminum will offset losses from the drop in Tianshan Aluminum's long position.| Gan Yuan vs. Kweichow Moutai Co | Gan Yuan vs. Contemporary Amperex Technology | Gan Yuan vs. G bits Network Technology | Gan Yuan vs. Beijing Roborock Technology |
| Tianshan Aluminum vs. China State Construction | Tianshan Aluminum vs. Poly Real Estate | Tianshan Aluminum vs. China Vanke Co | Tianshan Aluminum vs. China Merchants Shekou |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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